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A house price of $100,000 can be financed with two loans below with monthly payments. The total origination cost associated with these two loans is

A house price of $100,000 can be financed with two loans below with monthly payments. The total origination cost associated with these two loans is $3000.

Loan Amount Term (years) Interest Rate
1st Loan $80,000 30 5%
2nd Loan $10,000 30 7%

Alternatively, the borrower can borrow one loan in the amount of $90,000 with monthly payments and origination cost of $2,000. What should the interest rate be on the loan of $90,000so that the borrower will be indifferent between these two choices?

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